Prada Agrees to Buy Versace in New Luxury Fashion Deal

The Prada Group will add Versace to their collection of luxury companies, including Miu Miu, Church’s shoes, and Marchesi 1824.

Prada agreed to purchase Versace from Capri Holdings in an all-cash deal worth $1.375 billion including debt, bringing the luxury brand back to Italy.

The deal, which is the largest in Prada’s history, is set to close later this year. The news comes shortly after Donatella Versace stepped down as the brand’s chief creative officer. She now serves as a chief brand ambassador.

“I am absolutely delighted for Versace to become part of the Prada family,” Donatella stated on Instagram. “Gianni and I have always had a huge admiration for Miuccia, Patrizio and their family. I am honoured to have the brand in the hands of such a trusted Italian family business and I am ready to support this new era for the brand in any way that I can.”

Versace has been operating at a loss as of late. The acquisition propels Italian luxury fashion into deeper competition with their biggest rivals, including LVMH, which owns brands such as Christian Dior, Loewe, Givenchy, Louis Vuitton and others.

Prada Chairman and Executive Director Patrizio Bertelli, husband of designer Miuccia Prada, highlighted the company’s commitment to staying true to Versace’s roots while further expanding the success of the brand. Bertelli and Miuccia are the company’s largest shareholders.

“We are delighted to welcome Versace to the Prada Group and to build a new chapter for a brand with which we share a strong commitment to creativity, craftsmanship and heritage,” Bertelli stated in a press release. “We aim to continue Versace’s legacy celebrating and re-interpreting its bold and timeless aesthetic; at the same time, we will provide it with a strong platform, reinforced by years of ongoing investments and rooted in longstanding relationships.”

Capri Holdings purchased Versace from the family and Blackstone in 2018 for $2.15 billion, including the company’s debt. John Idol, the chairman and CEO of Capri, expressed his belief in Prada to help Versace continue to prosper.

“Over the last six years, we have made tremendous progress in repositioning the brand to place greater emphasis on its luxury heritage and exceptional craftsmanship,” Idol stated in a press release. “Through elevated product, marketing and store enhancements, the brand is now well positioned for sustainable long-term growth. We are confident that Prada Group is the perfect company to further guide Versace into its next era of growth and success.”

Prada began as a Milan-based leather goods store started by Miuccia’s grandfather in 1913. Versace’s bright, bold aesthetic is a significant departure from the more minimal aesthetic of Prada.

Versace was founded much later as Gianni Versace created the brand in 1978. After Gianni’s passing in 1997, Donatella became the driver of creativity for the brand.